Video 7 - Simple Bookkeeping
SIMPLE BOOKKEEPING (This is a transcript of the video lesson #7 of the same name from the series of video lessons entitled “How To Start a Micro Business”.)
by Dr. Jerry Dean Epps, Ph. D.
Using the sample Income-Expenses sheet on the website, you can see the blanks places by the days of the week for writing in how much money you took in for each day. There is also a place to write expenses for the week. Usually there will not be as many expenses and you can keep them for each day but for the week will be ok too.
Now, take the amount of Income for the week and subtract the amount of the expenses. The part left over is your GROSS PROFIT. Continue on, from the gross profit, subtract your re-stocking fee and an amount set aside for savings, the amount left over is your NET PROFIT. Net profit is what you get to keep. Re-stocking fee is the money you use to replenish your stock so you have a full line to sell again next week. Savings! You ALWAYS want to save some money each week. Always take out some money to save. This is important. You will thank me many times if you follow this practice of saving each week—later on you will wisely put the money to good use.
At the top of the form you can put the date for the week beginning, for example: Monday, August 12, or the date for whatever month you are in. You will have weekly records.
You will need a bank account. If you partner with me, you will need a bank that does international money transfers so we can transfer money between us. If you don’t partner with me, that is fine—choose a reliable bank that will be good for you. Not everyone needs to partner with me. I am very happy to have people use these video lessons to create a micro business who do not partner with me. The knowledge is free for all to use. I want the entire world to be prosperous. I am happy to capitalize (give you the start-up money) and partner with you in your microbusiness if you want me too and I think your micro business will be a success. See lesson # 9 for details.
Always keep receipts. You may need to justify your expenses. Always keep receipts. Calculators are cheap. You do not have to have one, but I strongly recommend it. They make record keeping fast and accurate.
You will need to decide if you will have partners and how you will share profits with them. Decide who will keep the books and how much time it will take. How will you keep the records safe after they are filled out each week?
Do make a practice week record. Guess at some numbers and put them in the form. Do the entire process as if it were real. Get used to this process BEFORE you actually start the micro business. Do two or three practice weeks. You will learn something new each time.
You will be successful at simple bookkeeping if you follow these guidelines.
Remember our motto, “You CAN start a micro business and earn money to improve your life and improve your community too.” See you for the next lesson. This is Dr. Epps, signing off.
The forms and worksheets that you need to get started in a micro business are located here.